Heska price target raised to $120 following management meetings at Benchmark. After meeting with meetings with Heska (HSKA) management, Benchmark analyst Raymond Myers came away with a better understanding of how current investments are likely to accelerate future cash flows and how its new products and international expansion can accelerate revenue growth in 2019. He also said Zoetis' (ZTS) deal to acquire Abaxis (ABAX) "puts a high price tag on Heska," estimating that valuing Heska on the same terms as Abaxis would imply a valuation of $143 per Heska share. Myers raised his price target on Heska to $120 from $100 and keeps a Buy rating on the shares.

Stocks opened little changed and moved in a narrow range while searching for direction. The day's economic reports, including industrial production, housing starts and energy inventory data, all seemed to have little effect on the market. When the market finally made its move, the direction was higher, though the listless trading session ended with the averages only modestly higher. ECONOMIC EVENTS: In the U.S., housing starts fell 3.7% to a 1.287M rate in April, which was a steeper decline than expected. A lack of supply is constraining the housing market. Building permits declined 1.8% last month to a 1.352M pace, which was roughly in-line with estimates. Industrial production increased 0.7% in April with capacity at 78.0%, which was better than expected. COMPANY NEWS: Shares of Macy's (M) advanced nearly 11% after the department store owner reported better than expected first quarter sales and profits and raised its outlook for the year. The report provided relief not just for Macy's shares, but for a number of its peers, including J.C. Penney (JCP), Nordstrom (JWN), and Kohl's (KSS), all of which will also be reporting their own earnings shortly... Shares of Abaxis (ABAX), a maker of veterinary diagnostic instruments, jumped 16% to close at $83.34 after announcing an agreement to be bought by Zoetis (ZTS) for approximately $2B, or $83 per share in cash. Zoetis shares dipped fractionally following the deal announcement... Meanwhile, CNBC's David Faber reported that National Amusements, majority owner of CBS (CBS) and Viacom (VIAB), amended CBS bylaws to require certain board actions with respect to dividends to be approved by a supermajority of the CBS board of directors. CBS sources told Faber they were "not surprised" by the amendment. Late in the session reports indicated that a Delaware judge granted a temporary restraining order against National Amusements until he delivers his judgement on its dispute with CBS, which he promised to do before CBS' board is set to meet on Thursday. MAJOR MOVERS: Among the noteworthy gainers was Enphase Energy (ENPH), which rose about 6% after H.C. Wainwright initiated coverage of the stock with a Buy rating. Also higher were Boot Barn (BOOT) and Sea Limited (SE), which each gained roughly 12% after reporting quarterly results. Among the notable losers was Overstock.com (OSTK), which slid 5% after Soros Fund Management disclosed in a filing that it had exited its position in the stock during the first quarter. Also lower was Iqvia (IQV), which fell 3% after it issued a response to an FDA statement earlier, saying it "takes the FDA's concerns seriously" but that it stands by its data methodologies. The FDA earlier said it discovered an inaccuracy in certain data provided to the agency by the Iqvia National Sales Perspectives database, including data on certain opioid drug products. INDEXES: The Dow rose 62.52, or 0.25%, to 24,768.93, the Nasdaq gained 46.67, or 0.63%, to 7,398.30, and the S&P 500 advanced 11.01, or 0.41%, to 2,722.46.

Stocks opened little changed but have improved a bit throughout the morning. Bond yields are just below their highs, but have been rising, as have been oil prices, which are now trading right near the $71 a barrel mark. ECONOMIC EVENTS: In the U.S., housing starts fell 3.7% to a 1.287M rate in April, which was a steeper decline than expected. A lack of supply is constraining the housing market. Building permits declined 1.8% last month to a 1.352M pace, which was roughly in-line with estimates. Industrial production increased 0.7% in April with capacity at 78.0%, which was better than expected. COMPANY NEWS: Shares of Macy's (M) advanced over 10% after the department store owner reported better than expected first quarter sales and profits and raised its outlook for the year. The report provided relief not just for Macy's shares, but for a number of its peers, including J.C. Penney (JCP) and Nordstrom (JWN), both of which are scheduled to issue their own earnings reports tomorrow, and Kohl's (KSS), which reports next week... Shares of Abaxis (ABAX), a maker of diagnostic instruments for veterinary point-of-care services, have jumped 16% to $83.05 after announcing an agreement to be bought by Zoetis (ZTS) for approximately $2B, or $83 per share in cash. Zoetis shares have slipped 0.5% following the deal announcement. MAJOR MOVERS: Among the noteworthy gainers was Enphase Energy (ENPH), which rose 10% after H.C. Wainwright initiated coverage of the stock with a Buy rating. Also higher were Boot Barn (BOOT) and Sea Limited (SE), which gained a respective 17% and 11% after reporting quarterly results. Among the notable losers was Overstock.com (OSTK), which slipped 4% after Soros Fund Management disclosed in a filing that it had exited its position in the stock during the first quarter. Also lower was Avnet (AVT), which fell 3% after Goldman Sachs downgraded the stock to Sell from Neutral, citing cycle risk, margin pressure, and its valuation relative to peers. INDEXES: Near midday, the Dow was up 38.79, or 0.16%, to 24,745.20, the Nasdaq was up 45.38, or 0.62%, to 7,397.01, and the S&P 500 was up 10.58, or 0.39%, to 2,722.03.

UP AFTER EARNINGS: Macy's (M), up 7%... Boot Barn (BOOT), up 16%. ALSO HIGHER: Several department store peers are rising following the quarterly report from Macy's, including J.C. Penney (JCP), Kohl's (KSS) and Nordstrom (JWN)... Abaxis (ABAX), up 15% after announcing a definitive merger agreement pursuant to which the company will be acquired by Zoetis (ZTS) for $83 per share in cash... GameStop (GME), up 4% after CNBC reported that hedge fund Tiger Management has sent a letter to the company's board calling on the retailer to conduct a strategic review amid its recent management upheaval. DOWN AFTER EARNINGS: Canadian Solar (CSIQ), down 2%. ALSO LOWER: Verastem (VSTM), down 13% after $35M common stock offering... RYB Education (RYB), down 5% after the stock was downgraded to Neutral from Outperform at Credit Suisse.